SAC Capital Advisors, a Connecticut-based hedge funds company, is close to settle a deal with the US federal prosecutors, under which it will pay over US$1 billion to settle the criminal insider trading case imposed on the firm.
According to a person familiar with the matter, the payment will be divided as both penalty and forfeiture of trading profits allegedly derived from improper trading by SAC manager Steven A. Cohen’s hedge fund and is expected to be between US$1.2-1.4 billion.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Upon finalisation of the deal, SAC would pay the US government a total of around US$2 billion, including US$616 million as penalty for civil insider-trading settlement, which it agreed with the Securities and Exchange Commission in March 2013.
SAC said Cohen has not been accused of criminal wrongdoing and has done nothing wrong.
According to Mark Kornfeld, a partner at law firm BakerHostetler, it will be a historic win for the prosecution, with the largest monetary penalty in history for an insider trading scandal.
"If they can extract an admission of wrongdoing from Mr. Cohen, who is one of, if not the world’s most well known hedge fund managers, that is a significant development," Kornfeld added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
